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Pa PUC Chair Encourages Exploration Of "Any And All Options" To Protect Consumers From Rising Energy Prices
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As the Pennsylvania PUC approved without modification a generally available new Time of Use generation rate offering from Duquesne Light, Pennsylvania PUC Chair Stephen DeFrank stated, "I think we should explore any and all options to help customers protect themselves from rising energy prices."
DeFrank, in an earlier motion adopted by the PUC, had previously directed Duquesne Light to develop a generally available TOU generation rate, in contrast to Duquesne Light's prior TOU generation rate which was limited to EV customers.
DeFrank once again, "encourage[d] all EDCs [utilities], along with EGSs [retail suppliers], to explore ways to maximize Time of Use rates in addressing the challenges we see coming for our electric industry."
DeFrank had recently asked, in an energy efficiency proceeding, "that all parties explore new and creative ways to most effectively utilize the tools at our disposal."
DeFrank stated, "TOU rates, whether offered by electric distribution companies (EDCs) or electric generation suppliers (EGSs), have had extremely limited uptake in the Commonwealth. While these rates may be more complex than fixed rates, I think the value proposition they offer could improve in coming years. Questions about resource adequacy -- especially in light of surging energy demand from large data centers -- have been at the front of our minds here at the PUC."
The PUC approved without modification Duquesne Light's proposal for the new generally available Time of Use generation rate option for customers taking default service supply, effective June 1, 2025. See full details on the new TOU offering here.
The new TOU generation rate will be available to eligible residential and small & medium commercial and industrial customers under 200 kW (eligibility discussed in prior story here)
Under the new TOU rate option, after a residential customer enrolls in the TOU default service option, "they will receive personalized behavioral load shaping (BLS) communications via email from a third-party provider, which will inform them how much electricity they use during each TOU period and provide them with tips for shifting consumption away from the peak period."
Residential customers in the TOU default service option will also have access to a "unique" electricity usage dashboard on Duquesne Light's website which allows customers to evaluate the amount of electricity used in each TOU period.
The Retail Energy Supply Association, in commenting on Duquesne Light's proposal, had said that the PUC should consider directing Duquesne Light to advise customers, in advertising materials and on the TOU website, that additional TOU options may be available in the competitive market from retail suppliers
The PUC declined to provide such direction to Duquesne Light
In approving Duquesne Light's new TOU option, the PUC said, "it is worth mentioning the availability of TOU program advertising materials on PAPowerSwitch, the official electric shopping website of the Commission. It should be noted that because the TOU program is different and more complex than conventional offers, TOU programs are not included on the usual shopping pages on PAPowerSwitch. Utilities and suppliers are able to post a weblink on PAPowerSwitch, and electric utility customers are able to navigate the PAPowerSwitch site to any TOU offers on their websites that may be available."
The PUC observed that, "Currently there are only default service providers or utilities that are offering a TOU product on PAPowerSwitch. The Commission’s Office of Competitive Market Oversight (OCMO) has informed the supplier community in the past about making the TOU programs available to shopping customers, but no supplier has posted a TOU offer yet."
The PUC said that the Commission is not addressing, in its approval order, RESA's sought confirmation that recovery of all costs associated with the expansion of the TOU generation rate program shall be from default service customers (as proposed by Duquesne Light). The PUC said that, "This matter is more appropriately addressed in the company’s next filing of its Annual Reconciliation Statement pursuant to 66 Pa. C.S. § 1307(e)."
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PUC Approves New Utility Time Of Use Generation Rate Option For Non-Shopping Customers
April 10, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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